BOSTON — Developers Boylston Properties and The Wilder Cos. have secured $324 million in construction financing and joint venture equity for the development of Arsenal Yards, a six-building, mixed-use redevelopment of the former Arsenal Mall in Watertown.
HFF worked on behalf of the developers to source institutional investors advised by JP Morgan Asset Management as joint venture equity partners, providing $102 million of equity. HFF also arranged a $222 million construction loan from Wells Fargo Bank.
“HFF was able to work closely with the development team to secure a capitalization structure that met their objectives,” says Brett Paulsrud, senior director at HFF. “This redevelopment will dramatically transform the landscape of Watertown, adding a significant amenity base to the area. It will be very exciting to watch this best-in-class partnership create a new destination for surrounding residents and businesses alike.”
Located on the site of the former Watertown Arsenal, which predates the Civil War, New England Development opened the mall as Arsenal Marketplace in 1983. In 2013, Boylston Properties and The Wilder Companies purchased the property with the intention of redeveloping it into a mixed-use project.
Arsenal Yards is scheduled to open in 2019 and will feature 250,000 square feet of destination shops and eateries, anchored by Roche Bros., The Majestic Cinema and Yard Works, a 200,000-square-foot office and lab space. The project will also include 425 residential units as well as a 150-room Hampton by Hilton hotel.
Boylston Properties is a Boston-based real estate developer of urban mixed-use properties. The Wilder Cos. is a Boston-based retail real estate firm specializing in mixed-use developments, community centers, urban properties, and regional and super-regional malls.
— David Cohen